Glencoe Accounting

Chapter 24: Uncollectible Accounts Receivable

Extend: Matter of Ethics

Uncollectible Accounts

• Using your favorite news Web sites, find an article about misstatement of uncollectible accounts receivable. Use the search term "uncollectible accounts."

• A 2002 case is described in the article "Sears, Roebuck & Co. Is Sued by Chicago Law Firm Much Shelist for Securities Fraud"
  www.teplanet.com/

• Write a brief report detailing how the uncollectible accounts were misrepresented, the impact on earnings, the ethics principles that were violated, and how investors were harmed.